The Federation of Indian Exporters Organisation (FIEO) today said the foreign direct investment (FDI) in the retail sector will spur exports and called for more such reforms to prop up the sagging economy.
FIEO President Ramu S Deora complimented the government in general and the Commerce and Industry Minister Anand Sharma in particular for permitting 51% FDI in multi-brand retail and 100% in single brand retail.
He added that economic reform process should be re-initiated with full vigour as was done in 1991 for inclusive growth.
He also said the move will help farmers get better prices, double of what they get today, as it can avoid middlemen who now exploit farmers.
"Today, our farmers receive only 30% of price paid by consumers compared to 50-70% in developed markets," Deora said.
"A structured retail will therefore, enable better price discovery for farmers as FDI will be able to access the world market as efficient producers sellers linkage will be established which will be more remunerative for producers," he added.
On the FDI guideline of 30% local sourcing, Deora said the move will provide further boost to exports.
"Units supplying to large retailers will achieve requisite quality and price competitiveness to graduate to exports. This will largely benefit export of textiles, leather, gems and jewellery, handicrafts, jute, coir and other life style products.
"This will also create more jobs and enhance their capabilities as retail buyers take goods in bulk," Deora said.
